Stock Market Crash of 1929: The Cause of the Great Depression For ten years, the stock market prices soared. But from October 24th-29th, stock prices fell causing nervous investors to sell off their stocks. Stock prices continued to fall because of this and the people of the United States could only watch as the prices dropped. Millions of people lost their stocks and money which left many unemployed. This financial collapse marked the beginning of the Great Depression.
Who was involved?Regular people that invested their money in the stock market. These people are called investors. Where did it happen?
The Stock Market Crash occurred at Wall Street, also known as the New York Stock Exchange.
[Crowd of people gather outside the New York Stock Exchange following the Crash of 1929]This picture shows a group people on Wall Street after the stock prices dropped on October 29,1929.
When did it occur?
After September 3, 1929 stock market prices began to decline. On October 18, 1929, stock prices dropped sharply, which alarmed many investors. It wasn't until October 24th, also known as Black Thursday, did investors start taking action and selling their stocks. This only triggered a farther fall in stock prices. On October 29,1929 the stock market crashed causing many investors to lose their life savings. Banks and businesses failed, due to their losses. This marked the beginning of the Great Depression.
Why did this happen?
Many people wanted to buy stocks but not everyone had enough money to buy them. Brokerage allowed people to put down some of their own money but borrow the rest from a broker. If stock prices fell, the broker would make a "margin call" and the investor would have to pay back the money that they borrowed. Many people took risks and borrowed money. But when stock prices fell and the brokers asked the investors to pay them back, the investors didn't have enough money to do so. That's why they started selling their stocks which caused the stock prices to drop even more.
"Destitute pea pickers in California. Mother of seven children. Age thirty-two.Nipomo, California. This picture shows a mother who couldn't support her children during the Great Depression. The stock market crash caused the Great Depression and affected millions of people causing them to lose their jobs and homes.
This is a picture of a newspaper in 1929 with article about the stock market crash.
This is a picture of a man selling his car to someone who lost his money in the stock market crash.
For ten years, the stock market prices soared. But from October 24th-29th, stock prices fell causing nervous investors to sell off their stocks. Stock prices continued to fall because of this and the people of the United States could only watch as the prices dropped. Millions of people lost their stocks and money which left many unemployed. This financial collapse marked the beginning of the Great Depression.
Who was involved?Regular people that invested their money in the stock market. These people are called investors.
Where did it happen?
The Stock Market Crash occurred at Wall Street, also known as the New York Stock Exchange.
When did it occur?
After September 3, 1929 stock market prices began to decline. On October 18, 1929, stock prices dropped sharply, which alarmed many investors. It wasn't until October 24th, also known as Black Thursday, did investors start taking action and selling their stocks. This only triggered a farther fall in stock prices. On October 29,1929 the stock market crashed causing many investors to lose their life savings. Banks and businesses failed, due to their losses. This marked the beginning of the Great Depression.Why did this happen?
Many people wanted to buy stocks but not everyone had enough money to buy them. Brokerage allowed people to put down some of their own money but borrow the rest from a broker. If stock prices fell, the broker would make a "margin call" and the investor would have to pay back the money that they borrowed. Many people took risks and borrowed money. But when stock prices fell and the brokers asked the investors to pay them back, the investors didn't have enough money to do so. That's why they started selling their stocks which caused the stock prices to drop even more.Survivors of the Great Depression:The Stock Market Crash of 1929 triggered the Great Depression. Listen as survivors share their stories and tell the effects of the crashes that occurred in 1929.http://www.npr.org/templates/story/story.php?storyId=97468008
Additional Information:Details on the Stock Market Crash of 1929 and what caused it to happen.
http://ic.galegroup.com/ic/uhic/ReferenceDetailsPage/ReferenceDetailsWindow?failOverType=&query=&prodId=UHIC&windowstate=normal&contentModules=&mode=view&displayGroupName=Reference&limiter=&u=s0182&currPage=&disableHighlighting=false&displayGroups=&sortBy=&source=&search_within_results=&p=UHIC%3AWHIC&action=e&catId=&activityType=&scanId=&documentId=GALE%7CEJ1667500667